Big Update: Govt. Hikes Dearness Allowances By 3 Times For Government Employees

Implementing from January 1, 2022, the DMK government in Tamil Nadu, led by Chief Minister MK Stalin, has ordered a significant increase in Dearness Allowance for government employees, pensioners, teachers, and family pensioners.

CM Stalin has ordered a hike in Dearness Allowance (DA) from 17 percent to 31 percent, a 14-point increase that will cost the state an additional Rs 8,724 crore each year.

Pongal Gift of Rs 3000 & 1000

Despite the financial strain, the Tamil Nadu government has ordered a 'Pongal' (harvest festival) gift of 3,000 rupees for C and D category employees, 1,000 rupees for those on special pay matrix salaries, and 500 rupees for pensioners, including those on special pensions. The Pongal celebration will take place on January 14, 2022. The state will incur an additional annual expenditure of Rs 169.56 crore as a result of the festive gift.

CM Stalin Announces DA Increase By 3 Times

On September 7, CM Stalin declared in the Tamil Nadu Assembly that the Dearness Allowance for government employees and pensioners would be increased by three months. He has previously stated that a new DA rise would begin on January 1, 2022.

The government, on the other hand, had not indicated the percentage increase that was being considered at the time. Employees had asked and expected an 11 percent pay increase.

DA Hike To Benefit 16 Lakh Govt. Employees

The recent DA Hike, according to the Tamil Nadu government, will benefit around 16 lakh government employees and retirees. The rise in DA for employees and pensioners was previously announced in the amended budget (2021-22), with an effective date of April 1, 2022, which was later advanced by three months.